Clear preference for quality and location

• Auckland CBD vacancy rate stood at 15.2% for H2 2024 (203,200 sqm), increasing from 14.8% between the June and December 2024 survey period. Prime and secondary office space increased to 10.3%, up 60 bps, and 20.6% and 50 bps, respectively.
• This is above the long-term averages and reflective of the wider economic environment. We forecast the overall vacancy rate to further increase between 100 bps and 180 bps as large-scale projects are delivered and major occupiers continue to right-size.

An increase in supply will provide more occupier options

• The relocation of tenants to new space will continue as occupiers seek high-quality space, but there is also a significant amount of existing supply in a limited number of premises that will keep new construction levels from increasing total supply significantly.
• There have also been a number of developments signalled for works over the next few years, including MRCB’s Symphony Centre, Precinct Properties’ Downtown Car Park redevelopment of +60,000 sqm of office space and Manson TCLM’s 35 Graham Street redevelopment.

Investment activity poised to rise after dearth of activity

• Premium average net face rents hold steady at NZD 705 per sqm, p.a., since Q3 2024, showing top-tier property resilience, but the completion of new developments will test new upper-level parameters. Grade A average net face rents remain at NZD 505 per sqm since Q2 2024.
• CBD office transactions amounted to NZD 625.55 million during 2024, with no sales recorded so far in 2025.

Outlook: A tangible uptick in demand for high-quality office spaces to continue

• Auckland’s CBD office market shows signs of increasing activity levels, with a tangible uptick in demand for high-quality office spaces, albeit balanced with increasing levels of new supply.
• Efforts to consolidate and optimise office spaces are expected to stir activity, especially in the CBD Core and Wynyard Quarter, where occupiers in the professional services and finance sectors are evaluating their next move.